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16 hours ago 2 min read
Fertiliser major Yara will acquire a 1.3 million tonnes per year grey ammonia plant in Texas City for $1.3bn, after confirming it would not take a stake in Air Products’ Louisiana blue ammonia development.
The Gulf Coast Ammonia (GCA) plant, developed by equity firm Lotus Infrastructure Partners and German energy supplier MB Energy, is in early commissioning, with production ramping up to full operations by end-2026.
Yara said the acquisition will strengthen its US production capacity.
The acquisition also represents a shift in Yara’s US ammonia strategy, replacing its in Air Products’ blue ammonia project with investment in GCA’s grey ammonia plant.
Svein Tore Holsether, President and CEO of Yara, said, “[This acquisition] supports our long-term strategy of diversifying our energy exposure, capturing economies of scale, and lowering both fixed costs and capital per tonne.”
Ammonia produced on-site will supply Yara’s internal fertiliser production system and industrial customers.
Air Products supplies hydrogen, nitrogen, and utilities to the GCA site under a backed by an approximately $500m investment in onsite production assets, including a steam methane reformer and air separation unit.
In December, Air Products said it was in advanced negotiations with Yara over the proposed sale of ammonia assets at the Louisiana complex.
Yara had considered taking on ammonia production, storage, and shipping facilities, estimated at $2.25bn, accounting for of the project’s total $9bn costs.
However, Yara said that it will not proceed with the acquisition of ammonia assets at the project and will instead redirect capital to other US ammonia investments offering stronger returns.
Yara is also finalising an ammonia offtake, marketing and distribution agreement with Air Products at the in Saudi Arabia.
